SET re­search­ing so­cial en­ter­prise sup­port

Bangkok Post - - NATIONAL - DARANA CHUDASRI

The

Stock Ex­change of Thai­land (SET) is study­ing the pos­si­bil­ity of en­cour­ag­ing so­cial en­ter­prise (SE) busi­nesses to raise funds from the cap­i­tal mar­ket to sup­port busi­ness growth and so­cial de­vel­op­ment si­mul­ta­ne­ously.

The bourse be­lieves so­cial de­vel­op­ment im­pact and aware­ness of en­vi­ron­ment, so­cial and gov­er­nance (ESG) will be the norm for do­ing busi­ness in the fu­ture, said Nop­pakao Suchar­i­takul, ex­ec­u­tive vice-pres­i­dent of SET.

“ESG is the fu­ture di­rec­tion of the coun­try, par­tic­u­larly for so­cial en­ter­prise busi­ness. We want to cre­ate a new type of en­tre­pre­neur with ESG and so­cial im­pact con­cerns,” said Ms Nop­pakao.

ESG aware­ness re­flects good risk man­age­ment of busi­nesses as they are con­cerned about other fac­tors apart from the mere busi­ness risk, such as cli­mate change and pop­u­la­tion well-be­ing, she said.

SE busi­nesses are a com­mon con­cept in Europe, es­pe­cially in Bri­tain. In Thai­land, there are some large SE brands such as Doi Kham and Ab­hai­herb, but Thais are largely un­fa­mil­iar with this type of busi­ness.

On July 10, the draft law sup­port­ing so­cial en­ter­prise busi­ness was ap­proved by the cab­i­net.

Busi­nesses reg­is­tered as so­cial en­ter­prise will have their net profit waived from busi­ness taxes.

How­ever, these busi­ness must con­trib­ute up to 70% of net profit to busi­ness or so­cial ben­e­fits.

Com­pa­nies that in­vest or do­nate to so­cial en­ter­prise causes are able to claim tax de­duc­tions.

The gov­ern­ment ex­pects that this law will en­cour­age around 300 or­gan­i­sa­tions and pri­vate com­pa­nies to op­er­ate as SE busi­nesses.

The SET has two stock mar­kets and a fund-rais­ing plat­form to help busi­nesses raise funds from the cap­i­tal mar­ket. These com­prise the SET in­dex for large com­pa­nies, the Mar­ket for Al­ter­na­tive In­vest­ment in­dex for medium-sized firms, and Live, the lat­est fundrais­ing plat­form for small com­pa­nies and star­tups seek­ing ven­ture cap­i­tal or in­vest­ment from in­sti­tu­tional in­vestors.

“SE busi­nesses in the early stages are sim­i­lar to a reg­u­lar startup, but their sur­vival rate might be higher at around 60% as the start­ing point of the busi­ness orig­i­nates and is de­vel­oped from an in­tent to sup­port so­cial causes and de­vel­op­ment,” said Ms Nop­pakao.

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